Ashburton Guardian, Monday, October 21, 2019

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Monday, Oct 21, 2019

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Farm sales halve as new rules bite By Susan Sandys

susan.s@theguardian.co.nz

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The number of farm sales in Mid Canterbury has halved over the last year, as new environmental restrictions on nitrate leaching take effect. PGG Wrightson Real Estate consultant Robin Ford said as purchasers had to prove through a farming consultant they could farm the property at base-figure levels set by Environment Canterbury, potential sales were falling over in cases where they had not been able to do this. “That’s what’s holding it up, and it’s quite difficult because anyone in the last 20 to 30 years, you always bought a farm and you farmed however you saw fit to make the most money from it, but you can’t do that any longer,” Ford said. In addition to this, trading banks pro-

viding mortgages required larger principal payments than they used to, making it financially tougher for purchasers to have enough money left over to farm their new property. Real Estate Institute of New Zealand figures show there were 16 farms sold in the 12 months to September in Ashburton District, with an average sale price per hectare of $47,461, compared to 31 farms sold in the previous 12 months, with an average sale price per hectare of $42,859. Ford said the higher price per hectare was due to more smaller farms being sold. These showed up as a higher price per hectare due to improvements on the properties. In reality, larger farms, that is those between $10 to $18 million, were selling at a lower price per hectare than they had one year ago.

Meanwhile, in the wider Canterbury region there was only an 18 per cent drop in the number of farm sales, while nationally the drop was even lower, just 6.7 per cent. Institute rural spokesman Brian Peacocke said nationally prices were remaining steady, but reflected a gradual easing over the last two years. The median price per hectare for farms sold in the three months to September was $25,754, compared to $25,447 for the same quarter in 2018. He said there had been an easing in volume of dairy farm sales across the country, particularly in Southland and Canterbury.

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